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Jun 30, 2024
ACCO Brands Q2 2024 Earnings Report
Reported strong bottom-line results and improved cash flow due to prudent cost management and strategic improvements.
Key Takeaways
ACCO Brands reported Q2 2024 results with net sales of $438 million, down 11.2% year-over-year. The company is on track to deliver over $20 million in cost savings in 2024. Net operating cash flow improved by $42 million, and the company anticipates free cash flow of approximately $130 million for the full year. Loss per share was ($1.29), which includes impairment charges, while adjusted EPS was $0.37, above the company's outlook.
Net sales were $438 million, a decrease of 11.2% compared to the prior year.
Gross margin expanded by 150 basis points.
The company is on track to deliver over $20 million in cost savings in 2024.
Adjusted EPS was $0.37, above the company's outlook.
Revenue by Segment
Forward Guidance
The Company is updating its full year 2024 outlook and providing a third quarter outlook. For the full year the Company now expects reported sales to be down in the range of 8.0% to 9.0%. Full year adjusted EPS is expected to be within a range of $1.04 to $1.09. The Company expects 2024 free cash flow of approximately $130 million with a year-end consolidated leverage ratio of approximately 3.0x to 3.2x. In the third quarter, the Company expects reported sales to be down in the range of 5.0% to 7.0%, and adjusted EPS within a range of $0.21 to $0.24.
Positive Outlook
- Full year adjusted EPS is expected to be within a range of $1.04 to $1.09.
- The Company expects 2024 free cash flow of approximately $130 million
- Year-end consolidated leverage ratio of approximately 3.0x to 3.2x.
- Company expects reported sales to be down in the range of 5.0% to 7.0% for Q3.
- Adjusted EPS within a range of $0.21 to $0.24 for Q3.
Challenges Ahead
- Reported sales to be down in the range of 8.0% to 9.0% for the full year.
- Softer global business and consumer demand for office products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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